Chinese Consul General tells Australia to look past mining to agriculture for new economic growth

The outgoing Chinese Consul General in Perth says Australia must look past the end of the mining boom to pursue new areas of economic growth with China.

Speaking at a business function last night, Madame Wang Yiner talked about the potential for Australia to develop other economic ties with Chinese companies outside of the mining industry.

She said Australia should look towards agriculture.

"Recently, many Australian people felt disappointed about the end of the iron ore mining boom," she said.

"I have visited farms and agri-business companies on many occasions and have gained a better understanding of animal breeding and agriculture of WA.

"I have seen that the potential for agribusiness cooperation between China and Australia is great.

"We should expand practical cooperation in animal husbandry and agriculture, as well as service industry."

There have been a number of reports focussing on the purchase of agricultural land by Chinese companies which has caused unease within the farming community across WA.

Australia China Business Council's Duncan Calder says there should be no concern about this.

He says Chinese companies are looking to form joint ventures with Australian companies rather than buying farm land outright.

"I think as China pursues the China dream and Chinese people become more wealthy, the middle class in China expands, then the appetite of the Chinese people also change," he said.

"So, for a country like Australia that has this outstanding reputation, produce out of Western Australia is very much sought after so Chinese companies are very keen to secure arrangements with companies that can see them accessing food supply.

Mr Calder says he does not think Chinese investment into land will be the dominant model going forward.

"I think we'll see a lot more complicated structures where Chinese perhaps provide long term offtake contracts or leasehold agreements into land or work in joint ventures with young Australian farmers to help them expand," he said.

"I think there will be a lot more focus on trying to secure win-win outcomes.

"The Department of Agriculture and Food is looking at ways to put together investment opportunities of a sufficient scale to attract China that are in out state's interest to improve, strengthen and in some cases resuscitate our agriculture sector."

Mr Calder says Australia must work harder than it did during the boom years to continue to attract investment within the resources sector.

"I think mining and energy will remain very strong in Australia's relationship with China and I think that will continue in the future but it's just getting a little bit harder for Australian companies to secure that capital," he said.

"That's because China originally made all of its investments in China but now have discovered other markets in countries like Russia and Kazakhstan are taking much more of the Chinese capital.

"So, I think we have to reconfigure the way we see China so they Australia as the best place to invest."

Duncan Calder stepped down from his position as WA president of the Australia China Business Council.

He now plans to stand for the national president role and is currently the senior national vice-president.